On analysis of the movement of WTI Crude Oil futures during the last few trading sessions, I find WTI Crude Oil were on a roller-coaster ride amid the changing tones of OPEC members. Finally OPEC came out with a moderate production hike with a unanimous vote after Saudi and Iran compromised. After a marathon of dialogues and efforts to remove differences among member and non-OPEC members, OPEC finally announce its decision to raise production by around 1 million barrels per day (bpd) from July. Although, the United States, which rivals Russia and Saudi Arabia for the position of world No.1 oil producer, has not participated in the current supply pact, the U.S. President Donald Trump tweeted within an hour after OPEC announced its decision, “Hope OPEC will increase output substantially. Need to keep prices down!”
Moreover, the output boost agreed on Friday has been largely priced. Secondly, the U.S. Secretary of State Mike Pompeo on Saturday warned Iran not to pursue nuclear weapons, saying it would face the "wrath of the entire world" if it did so, but added that he hoped it would never be necessary for the United States to take military action against the country. This statement from the U.S. Secretary of State will find its reflection upon the movement of WTI Crude Oil futures during the upcoming week.
Now, the focus of the WTI Crude futures seems to be on the upcoming geopolitical moves in response to the trading war concerns. After analysis of all the geopolitical moves, I’ve found the following trading zones for the movement of WTI Crude Oil futures in the following charts. To understand the following charts in detail see my video.
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